Bitcoin Faces Potential Drop to $61K if Support at $66K Fails: Analyst

• The cryptocurrency market observed a notable movement as Bitcoin recorded a significant price dip this past week.
• Expert analyst Ali Martinez has raised concerns that further declines might be imminent unless Bitcoin holds a crucial support level.
• Martinez’s insights were based on the detailed UTXO Realized Price Distribution (URPD) data.

Analyze the latest Bitcoin trends with our in-depth crypto news article, highlighting potential risks and support levels using expert insights and comprehensive data.

Analyst Predicts Bitcoin Correction Using URPD Data

Recently, Martinez emphasized that if Bitcoin does not re-establish itself above $66,254, it could face a decline towards $61,100. This prediction stems from the analysis of the URPD chart provided by Glassnode, which examines the points at which Bitcoin transactions remain unspent.

For those unfamiliar, an unspent transaction output (UTXO) signifies units of Bitcoin that remain unspent after a transaction. Each UTXO has a price that reflects the market value at the time of the transaction. The URPD chart categorizes Bitcoin supply based on these realized prices, showing the distribution of BTC acquired at various market levels.

The URPD chart can be instrumental in gauging market sentiment and understanding key support and resistance levels. High UTXO concentrations suggest significant acquisition points for investors, potentially acting as critical support or resistance zones.

Martinez’s chart revealed that 504,619 BTC were acquired at $66,254, underscoring its importance as a potential support level. Should Bitcoin fail to retain this price, the next significant level with substantial holdings—191,366 BTC at $61,101—could act as an alternate support.

Current Bitcoin Market Performance

At the time of this report, Bitcoin has a trading price of $66,151, marking a decrease of 1.15% over the past 24 hours. Additionally, the daily trading volume has diminished by 5.54%, amounting to $25.4 billion. Despite short-term dips, Bitcoin has posted a 5.80% increase over the past month, giving long-term investors cause for cautious optimism.

According to Coincodex, current market sentiment remains bearish. However, the fear and greed index is at 74, highlighting prevailing optimism and a propensity for risk-taking among traders, which could lead to increased volatility.

Conclusion

The latest data suggests Bitcoin is at a critical juncture, with specific support levels playing a pivotal role in its near-term trajectory. As Bitcoin hovers near these crucial points, investors must stay informed and vigilant, ready to adjust their strategies in response to market movements.